Sugar cane industries Ltd produce vinegar. The product is made in two production processes before completion...

 

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Sugar cane industries Ltd produce vinegar. The product is made in two production processes before completion and transferred to finished goods stock. For the week ended 26 November 2008, details of production were as follows: Direct materials (10000 litres) Labour Normal loss in process Normal loss in process Output Scrap value of all losses Process 1 $5000 $4000 2000 10% of input 9000 litres $0.40 per litre Required: (a) Process 1 account (b) Process 2 account ke) Abnormal loss account and abnormal gain account Process 2 S- $1800 1350 5% of input 8300 litres $0.50 per litte Sugar cane industries Ltd produce vinegar. The product is made in two production processes before completion and transferred to finished goods stock. For the week ended 26 November 2008, details of production were as follows: Direct materials (10000 litres) Labour Normal loss in process Normal loss in process Output Scrap value of all losses Process 1 $5000 $4000 2000 10% of input 9000 litres $0.40 per litre Required: (a) Process 1 account (b) Process 2 account ke) Abnormal loss account and abnormal gain account Process 2 S- $1800 1350 5% of input 8300 litres $0.50 per litte

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